Puma: Slimming Down a Predator - Puma Announces Major Restructuring Plan, Aiming to Cut 1,400 Jobs
Puma, the German sportswear giant, has announced a significant restructuring plan. By the end of 2024, the company aims to cut 1,400 jobs in corporate and administrative roles. This move comes amidst ongoing losses and declining revenues, with Puma's stock price also falling since summer 2023.
The job cuts will be implemented in two phases: 500 positions will be reduced immediately, with an additional 900 planned for 2024. CEO Arthur Hoeld, who joined Puma from Adidas in summer 2023, is leading the restructuring efforts. Hoeld aims to make Puma the clear number three in the sportswear industry by revenue.
Puma's financial performance has been challenging. In the first nine months of 2023, the company reported a loss of €257 million, with revenue falling by 8.5% year-over-year. Despite these setbacks, Puma maintains sponsorship deals with seven teams qualified for the 2026 FIFA World Cup.
To turn the situation around, Hoeld plans to revamp Puma's brand narrative and focus its product portfolio on football, running, fitness, and lifestyle categories. The company's market value has already been affected, leading to its demotion from the DAX to the MDAX in 2022.
Puma's restructuring plan, including job cuts and a strategic shift in product focus, is a response to ongoing financial challenges. The company's long-term goal remains to become the clear number three in the sportswear industry. Despite recent setbacks, Puma continues to maintain high-profile sponsorships in football.
